Around 24,000 employees of British Airways are in for a significant boost in their pay as the Unite trade union announced a pay rise of 13.1% over a period of 18 months. The decision to award
this substantial increase comes in light of the UK's high inflation rate and the recovery of the travel industry following the pandemic.
In addition to the pay rise, the deal includes a one-off payment of £1,000 for the employees. Moreover, there is the possibility for further pay increases during this period if inflation levels continue to remain high.
British inflation experienced a 41-year high of 11.1% last year and has been slow to decrease compared to other countries. As of June, it stood at 7.9%, the highest among major economies.
The offer of a 13.1% pay rise was put to British Airways staff, and they accepted it through a ballot process. British Airways, a subsidiary of International Consolidated Airlines Group (IAG), had to make tough decisions during the pandemic and cut over 10,000 employees to survive. However, as travel demand has rebounded to levels seen in 2019, the airline has been able to hire thousands of new staff. IAG's quarterly profit last week exceeded analyst forecasts by 40%, indicating a positive trajectory for the company.
Unite, the trade union representing the workers, highlighted that this agreement effectively reverses British Airways' controversial decision during the height of the COVID pandemic, where it had to let go and rehire its entire workforce, leading to significant pay cuts for many employees. The new deal not only restores but also increases pay for the workers, signaling better times ahead for the airline's workforce. Photo by Steve Lynes from Sandshurst, United Kingdom, Wikimedia commons.